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Diversified Healthcare Trust
(NASDAQ:DHC)
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Rating:54Neutral
Price Target:
$9.00
â–¼(-3.64% Downside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by weak financial performance (ongoing losses and negative/volatile cash flow), despite a potentially improved balance sheet snapshot. The latest earnings call provides a meaningful offset via reaffirmed raised guidance, strong SHOP operating momentum, and improving leverage/coverage, while technicals are mixed with soft near-term momentum. Valuation is also mixed: an extremely high yield supports the score, but the negative P/E reflects continued unprofitability.
Positive Factors
SHOP segment operating momentum
Sustained SHOP NOI growth, rising occupancy and meaningful rate increases indicate durable organic cash-flow improvements from the operating senior-housing portfolio. This enhances predictable rental income and supports longer-term margin expansion if operator execution continues.
Negative Factors
Persistent net losses and negative margins
Continued trailing losses and negative gross/net margins indicate the business has not yet converted operational gains into sustainable profitability. Persistent bottom-line deficits constrain retained earnings, hinder balance-sheet repair, and limit how quickly earnings can support distributions and reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
SHOP segment operating momentum
Sustained SHOP NOI growth, rising occupancy and meaningful rate increases indicate durable organic cash-flow improvements from the operating senior-housing portfolio. This enhances predictable rental income and supports longer-term margin expansion if operator execution continues.
Read all positive factors
Diversified Healthcare Trust Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by property type and service line—such as skilled nursing, assisted living, behavioral health, and management fees—showing which parts of Diversified Healthcare Trust generate the most cash. Reveals concentration risk, exposure to Medicare/Medicaid and private-pay mix, and whether occupancy or service demand trends are driving growth or decline.
Breaks down revenue by property type and service line—such as skilled nursing, assisted living, behavioral health, and management fees—showing which parts of Diversified Healthcare Trust generate the most cash. Reveals concentration risk, exposure to Medicare/Medicaid and private-pay mix, and whether occupancy or service demand trends are driving growth or decline.
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The Fly
The FlyDiversified Healthcare Trust (DHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.15B
Dividend Yield0.45%
Average Volume (3M)1.55M
Price to Earnings (P/E)―
Beta (1Y)0.20
Revenue Growth0.39%
EPS Growth-8.95%
CountryUS
Employees600
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)-1.11
Shares Outstanding242,106,930
10 Day Avg. Volume1,275,440
30 Day Avg. Volume1,552,924
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)0.70
Price to Sales (P/S)0.76
P/FCF Ratio-59.40
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$10.17Price Target Upside8.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.62
Revenue Forecast (FY)$1.49B
Diversified Healthcare Trust Business Overview & Revenue Model
Company Description
Diversified Healthcare Trust (DHC) operates as a real estate investment trust (REIT) specializing in healthcare properties. Its extensive portfolio comprises medical office buildings, life science facilities, senior living communities, and wellnes...
How the Company Makes Money
DHC makes money primarily by generating rental and related property income from its real estate portfolio. Key revenue streams typically include: (1) Lease revenue from properties rented to healthcare operators and other tenants, generally under c...
Diversified Healthcare Trust Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and financial picture driven by strong SHOP performance, meaningful NOI and margin expansion, improved liquidity and leverage metrics, and reaffirmed guidance. Key near-term headwinds include occupancy pacing below initial expectations due to timing of operator transitions, several one-time adjustments (benefits and charges), and known near-term vacancies in the Medical Office & Life Science segment. On balance, the operational momentum, cost savings, capital redeployment plans and guidance reaffirmation outweigh the temporary and identifiable headwinds.Positive Updates
Strong Earnings and Cash Metrics
Reported normalized FFO of $39.0M ($0.16/share) and adjusted EBITDAre of $82M for Q2 2026; consolidated NOI increased ~20.4% year-over-year to $84M (consolidated same-property cash basis NOI ~$83M, +20.2% y/y).
Negative Updates
Top-Line Occupancy Pacing Below Initial Targets
Average occupancy and top-line revenue are pacing slightly below original 2026 projections due to timing of operator ramp-ups and rebuilding local sales teams; SHOP occupancy growth guidance reduced by 100 bps (now expected 200 bps growth for 2026).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Earnings and Cash Metrics
Reported normalized FFO of $39.0M ($0.16/share) and adjusted EBITDAre of $82M for Q2 2026; consolidated NOI increased ~20.4% year-over-year to $84M (consolidated same-property cash basis NOI ~$83M, +20.2% y/y).
Read all positive updates
Company Guidance
DHC reaffirmed its recently raised full‑year 2026 guidance: total NOI $307M–$323M (SHOP NOI $185M–$195M), adjusted EBITDAre $300M–$315M and normalized FFO $0.56–$0.62 per share, while updating SHOP assumptions to occupancy growth of +200 bps (down 100 bps from prior), revenue growth of 6.6% (down 140 bps), average monthly rate growth of 5.5% (up 20 bps), operating expense growth of 2.5% (down 200 bps) and expense core growth of 1.5% (down 70 bps); management noted Q2 SHOP same‑store NOI benefited from a ~$1.5M one‑time expense reversal (~50 bps of margin), that SHOP NOI is tracking to the high end of guidance, recurring CapEx guidance of $100M–$115M, expected annualized dietary and contract savings of $14M–$16M (≈$8M recognized in 2026), near‑term contract renegotiation savings of ~ $2M annually starting Jan 2027, total liquidity ~$267M, net debt/EBITDA 7.1x (from 8.7x), adjusted EBITDAre/interest 2.2x (from 1.4x) and a portfolio of >$4B unencumbered assets.Diversified Healthcare Trust Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
48
Neutral
Cash Flow
29
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.50B | 1.54B | 1.50B | 1.41B | 1.28B | 1.38B |
| Gross Profit | -78.73M | -245.33M | 256.38M | 225.30M | 174.50M | 291.40M |
| EBITDA | 203.25M | 182.28M | 229.96M | 198.93M | 427.79M | 708.25M |
| Net Income | -265.95M | -285.89M | -370.25M | -293.57M | -15.77M | 174.51M |
Balance Sheet | ||||||
| Total Assets | 4.24B | 4.36B | 5.14B | 5.45B | 6.00B | 6.62B |
| Cash, Cash Equivalents and Short-Term Investments | 116.79M | 121.80M | 144.58M | 245.94M | 658.07M | 634.85M |
| Total Debt | 2.42B | 2.42B | 2.91B | 2.82B | 3.08B | 3.68B |
| Total Liabilities | 2.66B | 2.70B | 3.18B | 3.11B | 3.36B | 3.96B |
| Stockholders Equity | 1.58B | 1.67B | 1.96B | 2.34B | 2.64B | 2.66B |
Cash Flow | ||||||
| Free Cash Flow | -88.24M | -19.62M | 112.22M | 10.48M | -40.35M | -63.32M |
| Operating Cash Flow | -14.33M | -19.62M | 112.22M | 10.48M | -40.35M | -63.32M |
| Investing Cash Flow | 201.94M | 483.57M | -187.02M | -202.11M | 387.71M | 242.70M |
| Financing Cash Flow | -181.95M | -492.01M | -22.31M | -249.71M | -676.00M | 746.72M |
Diversified Healthcare Trust Technical Analysis
Negative
9.34
Price Trends
8.96
Negative
8.26
Positive
6.82
Positive
Market Momentum
-0.03
Positive
43.56
Neutral
49.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHC, the sentiment is Negative. The current price of 9.34 is above the 20-day moving average (MA) of 9.06, above the 50-day MA of 8.96, and above the 200-day MA of 6.82, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 49.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DHC.
Diversified Healthcare Trust Risk Analysis
Diversified Healthcare Trust disclosed 56 risk factors in its most recent earnings report. Diversified Healthcare Trust reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Diversified Healthcare Trust Peers Comparison
UnderperformOutperform
Sector (65)
DHC
Diversified Healthcare Trust
8.72
5.35
158.98%
LTC
LTC Properties
39.45
6.25
18.82%
OHI
Omega Healthcare
48.68
10.84
28.66%
Diversified Healthcare Trust Corporate Events
Executive/Board ChangesShareholder Meetings
Shareholders Reaffirm Diversified Healthcare Trust Leadership and Auditors
Positive
Jun 12, 2026
At its annual meeting of shareholders held on June 10, 2026, Diversified Healthcare Trust’s investors elected seven trustees to one-year terms on the Board of Trustees, with all nominees, including Christopher J. Bilotto and Alan Felder, rec...
Business Operations and Strategy
Diversified Healthcare Trust Highlights Strategic Healthcare REIT Focus
Positive
Jun 1, 2026
On June 1, 2026, Diversified Healthcare Trust published a new investor presentation outlining its current portfolio and strategic focus as a national healthcare REIT. The document highlighted the scale and diversification of its holdings, emphasiz...
Business Operations and StrategyFinancial Disclosures
Diversified Healthcare Trust Highlights Strategy and Strong Momentum
Positive
May 5, 2026
On May 5, 2026, Diversified Healthcare Trust released an investor presentation outlining its current positioning as a national healthcare REIT and highlighting the scale and composition of its portfolio, including senior housing, medical office an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.